Wednesday, April 18, 2012
Is Vikram Pandit worth $14.9 million?
Mr. Pandit is the CEO of Citigroup, Inc., which owns Citibank. The Citigroup board of directors plans to pay him $14.9 million this year.
So far, big whup. Another CEO getting another unbelievably obscene pay package from another board that thinks it has to pay its CEO about $286,538 a week in order to "retain top talent."
But wait. Citigroup shareholders just said "No." About 55% of votes were cast AGAINST approving this pay package for Pandit. It's a non-binding vote, so the board can go ahead and pay the whole $14.9 million if it wants to…..
But the point is, shareholders of Citigroup just proved that it's not a complete waste of your time to vote against excessive executive pay. The next time you get a chance to vote your shares at the annual meeting of a company whose stock you own, do what you think is right.
I wonder what Pandit would have done differently this year if the board had planned to pay him only $7 million, that is, the same as he was paid last year. No pay raise. Only $7 million.
What would he have done differently as top dog at Citigroup? Do you think he would have slacked off? Do you think he would have quit?
CEO pay, another whopper...